'Unfashionable regions are always worth a closer look'. That was the verdict of Hargeaves Lansdown's top fund picker Mark Dampier this week, but he wasn't talking about a far-flung unloved market, or a value opportunity in a downtrodden sector, instead the opportunity in question was the UK.

The UK has become an unfashionable place to invest as fears over the domestic economy after Brexit continue to spoil retail investors' appetites.

Investment Association figures this week revealed that some £290million poured out of UK equity funds in July, as investors focus instead on overseas opportunities.

But are investors who are more used to being told off for domestic bias now too quick to write off their home market?

Many investors continue to shy away from the home market amid uncertainty over the outlook for the UK economy post Brexit

The big worry for UK investors is Brexit - and it's not just the event itself that worries many people, it is the handling off it.

While the UK stockmarket climbed after an initial fall following the EU referendum, much of that rise was credited to investors buying into the higher profit figures that the weakness of the pound delivers to British firms doing business overseas.

In contrast, it's hard to find many people who put the gains in UK company share prices down to an increased confidence in the economy.

But bad news can sometimes provide the perfect cover for searching out hidden gems. So, is that true of the uncertainty brought about by Britain's vote to leave the EU?

That comes despite both the FTSE 100 and FTSE 250 trading only about 3 per cent off their all-time highs

The UK's most popular indices moved in the opposite directions after the initial falls following the contentious EU referendum result.

The FTSE 100, Britain's blue chip index, soon surged following the vote. This is largely because the fall in the pound's value bolstered FTSE 100 company revenues when transferred back into sterling - 70 per cent of which comes from overseas.

Meanwhile, the mid-cap FTSE 250, which is considered a better gauge of domestic sentiment, suffered a more prolonged dip, as investors rushed to offload stocks in house builders and other stocks which are most sensitive to the British economy amid an uncertain outlook.

Both indices are now riding relatively high, but the UK equity fund outflows suggest that investors are still suffering from the Brexit vote hangover and don't rate British markets.

Apathy shared by some investors to the UK has been stoked by a slowdown in GDP growth and the rise in inflation - which could have a telling financial effect on domestic facing businesses.

Andrew Johnston, senior investment research analyst at Square Mile Investment Consulting & Research, claims there is still much to like about the UK.

Britain's largest companies continue to be the biggest beneficiaries of the depreciation of the the pound, he says, adding the domestic economy is in decent shape with 'fair' GDP growth and unemployment at a 44-year low.

He adds: 'UK equities do not look either expensive or cheap relative to their own history, but they do offer a yield that is attractive versus many other equity markets, and certainly when compared to UK government debt.

'Nevertheless, that is not to say there are no risks, for the equity bull market has been in place for some time and weak wage growth, rising inflation and a low savings rate could dampen consumer spending.'

Commenting on Ben Whitmore, who manages the Jupiter trust, Dampier says: 'As a value investor and natural contrarian, he looks for businesses with healthy balance sheets, disciplined management, and sound franchises, which have fallen on hard times and are trading on depressed.'

On Giles Hargreaves, who runs the Marlborough UK Micro Cap Growth fund, he adds: 'We consider him to be one of the most experienced and successful UK smaller company fund managers.

'This fund invests in some of the smallest listed companies in the UK market. We view this as an under-researched area where shrewd fund managers have the opportunity to add significant value.'

Johnston meanwhile advocates the CF Lindsell Train UK Equity fund, which he says invests in firms with business models that are able to stand the test of time or brands that are perceived to be market leading.

He adds: 'However, this strategy has performed exceptionally well in recent years and whilst this may well continue we would caution holding it in isolation.

'In a similar vein, we would suggest the Evenlode Income fund, which shares a similar investment philosophy for the team are focused on companies delivering strong cash flows and sustainable dividend growth.'

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